This will see a record 16.2% of taxpayers paying the higher rate, largely due to the higher rate threshold being frozen in 2022-23 at the 2021-22 level, as well as the freeze to the higher rate threshold in 2020-21 and the earnings growth in the middle to the higher end of the income distribution. The figure has increased from a total of 4.8m in 2021-22.

This means that two million taxpayers have fallen into the higher rate tax band since 2010.

The threshold freeze is in place until 2025-26 which will draw more people into higher tax bands, increasing tax take for the Treasury.